There are 500 members in an organisation. Each member is liable to pay ₹100 p.a as subscription. Subscription received during the year 2021-2022 was ₹45,000. Outstanding subscription for the year 2020-2021 was ₹10,000. How much amount should be credited in Income & Expenditure Account for the year 2021-2022?
Answer & explanation
Correct answer: option 4
The correct answer is option 4- ₹50,000.
Subscription per member is ₹100 p.a.
Total members are 500
So, subscription credited to income & expenditure A/c
= 500 x 100
= ₹50,000
₹50,000 is credited to income and expenditure account as subscription for the year 2021-2022.